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The New Ecommerce Dilemma: Buy, Build, or Leverage?


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Buy vs. build is the perennial question facing IT leaders seeking to enable their organization's ecommerce ambitions. Learn what critical questions IT leaders need to consider before they select the right ecommerce strategy for their enterprise.

Featuring: Michael Vax, Chief Technology Officer, Elastic Path Software

Published in: Technology
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The New Ecommerce Dilemma: Buy, Build, or Leverage?

  1. 1. The New Ecommerce Dilemma: Buy, Build, or Leverage?<br />Presented by Michael Vax, CTO, Elastic Path<br />You may listen to audio using your computer’s microphone and speakers (VoIP) or dial in below:<br />United Kingdom: +44 (0) 161 660 8220 <br />United States: +1 516 453 0014 <br />Access Code: 664-571-172<br />
  2. 2. Introducing Elastic Path Software<br />Provides a flexible, feature-rich framework<br />For enterprises that have unique business requirements and a complex IT environment<br />Over 200+ clients rely on Elastic Path<br />#1 ecommerce blog<br />
  3. 3. Bill Mirabito: First, choose the model<br />Copyright ©2009. B2C Partners. All Rights Reserved.<br />Selecting the Right eCommerce Software in Six Weeks or Less<br />(<br />
  4. 4. What we will cover today<br />Understanding what models are available<br />Understanding your ecommerce needs<br />Finding the right model for your enterprise<br />
  5. 5. Understanding what models are available<br />
  6. 6. Every new market starts from “Build”<br />A small number of pioneers started to build ecommerce applications for their internal use<br />Web services companies started to develop ecommerce for their clients<br />Some started to productize their solution<br />
  7. 7. Complex choices<br />SaaS<br />Buy<br />Build<br />
  8. 8. SaaS solutions<br />A/B Testing<br />Web<br />Analytics<br />Tax <br />Calculation<br />Customer <br />Reviews<br />Payment<br />Gateways<br />Site Search<br />Complete<br />Ecommerce<br />Offering<br />Campaign<br />Management<br />Email<br />Marketing<br />Personalization<br />See more choices at<br />“Software-as-a-Service (SaaS) is a software deployment and subscription pricing model in which an enterprise application is delivered and managed as a service by software vendor to meet the needs of multiple customers simultaneously”<br />- THINKStrategies, Inc.<br />
  9. 9. Leveraging existing enterprise systems<br />Order<br />Management<br />Catalog<br />Management<br />Pricing<br />CRM<br />SaaS<br />Internal<br />Systems<br />CMS<br />Buy<br />Build<br />
  10. 10. Build, buy, or leverage?<br />Internal<br />Systems<br />SaaS<br />Buy<br />Build<br />
  11. 11. SaaS<br />SaaS<br />Web<br />Analytics<br />CRS<br />Customer<br />Reviews<br />Order<br />Management<br />
  12. 12. Buy<br />Order<br />Management<br />Pricing<br />CRS<br />Customer<br />Reviews<br />Buy<br />A/B Testing<br />Web<br />Analytics<br />Build<br />
  13. 13. Build<br />Web<br />Analytics<br />Pricing<br />CMS<br />Customer<br />Reviews<br />CRS<br />Build<br />Catalog<br />Management<br />Tax<br />Calculation<br />Order<br />Management<br />A/B Testing<br />Buy<br />
  14. 14. What is an ecommerce framework?<br />System providing feature rich ecommerce functionality that can be extended by your internal IT team, system integrators, or vendor.<br />Custom Ecommerce Features<br />Framework<br />Ecommerce Framework<br />Source Code<br />APIs<br />Reusable Services<br />Out-of-the-box features<br />Dev Env<br />
  15. 15. Ecommerce Framework<br />Tax<br />Calculation<br />Payment<br />Gateways<br />Web<br />Analytics<br />Customer<br />Reviews<br />Build<br />Ecommerce Framework<br />Order<br />Management<br />CRS<br />Price<br />Management<br />CMS<br />
  16. 16. What is a hosted managed model?<br />Your ecommerce services are hosted and managed by a vendor but with the option to take it in-house at any point.<br />
  17. 17. Hosted managed model<br />Customer<br />Reviews<br />Web<br />Analytics<br />Hosted Managed<br />Order<br />Management<br />Build<br />CRS<br />
  18. 18. Understanding your ecommerce needs<br />
  19. 19. Assessing your requirements and resources<br />
  20. 20. Complexity<br />Is there a single or multiple ecommerce initiatives?<br />What does your organization sell? <br />Single catalog or many different types <br />of products and services?<br />How will you deliver the<br /> ecommerce experience? <br />What type of ecommerce?<br />B2C , B2B , Both<br />
  21. 21. Complexity<br />Evaluate your ecommerce ecosystem. Do you plan to provide ecommerce services to your vendors, partners, customers, or resellers?<br />How different are those offerings from your own?<br />
  22. 22. Uniqueness<br />Do you have a unique business model, selling channel, or product?<br />Are you creating an innovation to stay ahead of your competitors?<br />
  23. 23. Integration<br />Internal<br />ERP (Orders, pricing, catalog) <br />Content management systems<br />Customer relationship management<br />External<br />Analytics<br />Tax calculation<br />Product reviews<br />
  24. 24. Urgency<br />Do you have a current solution?<br />How much time to you have to develop a new solution?<br />Will this ecommerce solution be rolled out to one or more business units all at once or one at a time?<br />
  25. 25. Strategic importance<br />How strategic is ecommerce to your success?<br />Is time to market critical to your success?<br />How fast will your ecommerce needs evolve?<br />Are you taking a global or local approach?<br />
  26. 26. IT budget<br />Do you have enough budget (i.e., capital and recurring expenses)?<br />Will this cost be shared amongst different departments?<br />
  27. 27. IT skills<br />Do you have an experienced IT team that can drive ecommerce initiatives?<br />What are your IT policies on in-house development?<br />Do you have trusted SI or partners that you can rely on?<br />
  28. 28. Your ecommerce expertise<br />Have you managed online stores before?<br />What is your organization’s experience in online marketing, site optimization, customer support?<br />Will you need to coordinate online and offline channels?<br />Are you aware of ecommerce regulations<br />Do you have experience using Web 2.0 social networking?<br />
  29. 29. Finding the right model for your enterprise<br />
  30. 30. When to use a hosting solution (SaaS)<br />COMPLEXITY<br />SaaS<br />UNIQUENESS<br />INTEGRATION<br />URGENCY<br />STRATEGIC<br />IT BUDGET<br />IT SKILLS<br />ECOM EXPERTISE<br />
  31. 31. When to Buy<br />COMPLEXITY<br />Buy<br />UNIQUENESS<br />INTEGRATION<br />URGENCY<br />STRATEGIC<br />IT BUDGET<br />IT SKILLS<br />ECOM EXPERTISE<br />
  32. 32. When to Build<br />COMPLEXITY<br />Build<br />UNIQUENESS<br />INTEGRATION<br />URGENCY<br />STRATEGIC<br />IT BUDGET<br />IT SKILLS<br />ECOM EXPERTISE<br />
  33. 33. When to use an ecommerce framework<br />COMPLEXITY<br />Ecommerce Framework<br />UNIQUENESS<br />INTEGRATION<br />URGENCY<br />STRATEGIC<br />IT BUDGET<br />IT SKILLS<br />ECOM EXPERTISE<br />
  34. 34. When to use a hosted managed solution<br />COMPLEXITY<br />Hosted Managed<br />UNIQUENESS<br />INTEGRATION<br />URGENCY<br />STRATEGIC<br />IT BUDGET<br />IT SKILLS<br />ECOM EXPERTISE<br />
  35. 35. Build, buy, or leverage – Find your model<br />Internal<br />Systems<br />SaaS<br />Your Enterprise<br />Ecommerce Solution<br />Hosted Managed<br />Ecommerce Framework<br />Build<br />Buy<br />
  36. 36. Next month’s webinar<br />Deliver successful enterprise ecommerce projects<br />Presented by Elastic Path and HCL<br />Date: Thursday, April 30<br />Time: 9am Pacific/ 12pm Eastern<br />Register at<br />